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Centrelink Family Tax Benefit (FTB) Part A and B Residency Requirements for Migrant Families

From 1 January 2024, Services Australia tightened the newly arrived resident’s waiting period (NARWP) for Family Tax Benefit (FTB) Part A. Migrants granted specific permanent visas on or after that date must now serve a 4‑year waiting period before FTB Part A becomes payable. Previously, the NARWP for FTB Part A was 2 years for most permanent visa holders. The change aligns FTB Part A waiting rules with those already applied to JobSeeker Payment, Austudy, and other working‑age payments. FTB Part B does not have a legislated NARWP, but its payability still depends on the claimant satisfying residence requirements under the A New Tax System (Family Assistance) Act 1999. For families relocating to Australia, the interaction between visa subclass, date of grant, and ongoing physical presence determines when and whether FTB can be received. Misunderstanding these rules leads to debt notices; Services Australia raised $2.8 billion in Centrelink debts in 2022‑23, a portion of which stemmed from residency non‑compliance. The following sections set out the legal residence tests, visa‑specific waiting periods, and practical steps for migrant families.

Residence Tests Under the Family Assistance Law

Australian Residence Definition for FTB

To be eligible for FTB, an individual must be an Australian resident for family assistance purposes. Section 21 of the A New Tax System (Family Assistance) Act 1999 defines an Australian resident as a person who resides in Australia and is either an Australian citizen, a permanent visa holder, or a protected Special Category Visa (SCV) holder. Temporary visa holders, including most international students and visitors, do not satisfy this definition and cannot receive FTB. The test of “resides in Australia” is not defined in the Act; Services Australia applies common‑law principles examining the person’s physical presence, intention to make Australia home, and the nature and duration of ties to Australia.

Temporary Absence Rules

An FTB recipient may continue to receive payments during a temporary absence from Australia for up to 6 weeks. After 6 weeks, FTB generally ceases unless the absence falls within specified exceptions: eligible medical treatment, Defence Force deployment, or humanitarian reasons. From 1 July 2024, the temporary absence limit for FTB Part A extended to 6 weeks for all recipients regardless of the reason for travel, removing the previous 3‑year portability period that applied to some pension‑age recipients. Services Australia confirmed this change in its 2024‑25 Budget measure factsheet published 14 May 2024.

FTB Part A vs Part B Residence Distinction

FTB Part A is a per‑child payment with an income‑tested supplement. FTB Part B provides extra assistance to single‑parent families and couple families with one main income earner. While both require Australian residence, only FTB Part A is subject to the NARWP. A family may qualify for FTB Part B immediately upon meeting the residence definition if no other waiting period applies and all other eligibility criteria are met.

Newly Arrived Resident’s Waiting Period for FTB Part A

2024 Rule Change: 4‑Year NARWP

On 1 January 2024, the Social Services Legislation Amendment (Strengthening Income Support) Act 2023 amended the NARWP provisions. FTB Part A moved from a 2‑year to a 4‑year waiting period for claimants granted a permanent visa on or after 1 January 2024. The waiting period begins on the day the person first arrives in Australia as a permanent resident or on the date the permanent visa is granted if the person is already in Australia. The 4‑year NARWP mirrors the waiting period already in place for Carer Payment, JobSeeker Payment, and Parenting Payment (single).

Visa Subclasses Affected

The NARWP for FTB Part A applies to holders of the following permanent visa subclasses granted on or after 1 January 2024:

Exemptions from the NARWP

Certain visa subclasses and circumstances are exempt from the FTB Part A NARWP. These include:

Services Australia’s Family Tax Benefit guide, updated 1 July 2024, lists the full exemption categories.

Transitional Provisions

Claimants granted a permanent visa before 1 January 2024 remain subject to the previous 2‑year NARWP for FTB Part A. If a family arrived in Australia on 15 December 2023 as permanent residents, their waiting period for FTB Part A ends on 15 December 2025. The date of visa grant, not the date of claim, determines which NARWP applies.

FTB Part B Residence Requirements

No Legislated Waiting Period

FTB Part B has no statutory NARWP. A claimant who satisfies the Australian residence definition on the date of claim may be eligible for FTB Part B immediately, subject to income and care arrangements. This creates a scenario where a newly arrived migrant family may receive FTB Part B for a child while still serving the 4‑year NARWP for FTB Part A.

Interaction with Income Tests

FTB Part B is subject to a primary earner income limit. For the 2024‑25 financial year, the limit is $112,578 per annum. If the primary earner’s adjusted taxable income exceeds this amount, FTB Part B is not payable regardless of residence status. The secondary earner income limit is $6,151 per annum before the payment begins to reduce at 20 cents per dollar. These thresholds are indexed annually on 1 July.

Single Parent Families

A single parent who meets the Australian residence definition can receive the maximum rate of FTB Part B for the youngest qualifying child. The 2024‑25 maximum rate for a child aged under 5 is $4,829.60 per annum, and for a child aged 5‑18 it is $3,365.60 per annum, as published by Services Australia on 20 September 2024. No NARWP applies, but the claimant must still be an Australian resident.

Practical Compliance and Claiming

Evidence of Residence

When lodging an FTB claim, Services Australia requires evidence of Australian residence. Acceptable documents include:

Services Australia may request a Residence and Portability Details form (SS284) if there is doubt about the claimant’s residence status.

Avoiding Debt

FTB is reconciled after the end of each financial year based on actual adjusted taxable income. If a family received FTB Part A during the NARWP without meeting an exemption, Services Australia will raise a debt for the full amount paid plus a 25% administrative fee in some cases. The Department of Social Services Annual Report 2022‑23 (published 20 October 2023) noted that 12,847 FTB debts totalling $48.3 million were raised due to residency non‑compliance. Claimants uncertain about their status should contact Centrelink’s multilingual phone service on 131 202 before lodging a claim.

International Agreements

Australia has social security agreements with 31 countries as of October 2024. These agreements generally cover age pensions and disability support but do not extend to FTB. A migrant from a country with an Australian social security agreement cannot use that agreement to bypass the FTB NARWP. The Department of Social Services confirmed this position in its Social Security Agreement Overview factsheet dated 8 March 2024.

Actionable Steps for Migrant Families

Check the visa grant date before claiming FTB Part A. If the permanent visa was granted on or after 1 January 2024, the 4‑year NARWP applies unless an exemption category is met. Families granted a permanent visa before that date remain under the 2‑year NARWP.

Claim FTB Part B immediately if the primary earner’s income is below $112,578 per annum. FTB Part B has no waiting period and can provide interim financial support while the FTB Part A NARWP runs.

Keep records of arrival dates, visa grant notices, and evidence of Australian residence. Services Australia conducts data‑matching with the Department of Home Affairs; discrepancies between claimed residence and visa records trigger automatic compliance reviews.

Use Services Australia’s online estimator tool to model FTB entitlement before lodging a claim. The estimator, updated for 2024‑25 rates, incorporates the NARWP logic and income tests. Access it via the myGov portal.

If a substantial change in circumstances occurs (family violence, death of a sponsor, or relationship breakdown), contact Centrelink immediately. Exemptions to the NARWP for FTB Part A may apply in these situations, and delayed notification can result in missed entitlements that are not fully backdated.


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